Table 56
Peterson Enterprises Uses a Continuous Review Inventory Control System

question 95

Multiple Choice

Table 5.6
Peterson Enterprises uses a continuous review inventory control system. The firm operates 50 weeks per year and has the following characteristics for an item:


Standard deviation in weekly demand $= 125$ units
You will need to refer to a normal table to answer the question(s) .
-Use the information in Table 5.6. What is the EOQ for this item?

• A) less than or equal to 1100 units
• B) greater than 1100 but less than or equal to 1200 units
• C) greater than 1200 but less than or equal to 1300 units
• D) more than 1300 units

---

Definitions:

Brainstorming

A creative group problem-solving technique where participants generate a variety of ideas without judgement to find a solution to a specific problem.

Organizations

Structured groups of people who come together to achieve specific goals, following a systematic approach and defined roles.

Creativity

The capacity to generate unique and beneficial ideas or answers.

Effective Managers

Effective Managers are individuals who achieve organizational goals through planning, organizing, leading, and controlling resources efficiently and effectively.